Artificial intelligence stock and fintech company nCino (NCNO) is trading inside a buy zone after several strong weeks in the black. That, along with strong fundamentals and solid institutional support, makes nCino worth watching.
↑ XShares have jumped more than 21% in October so far. The stock broke out of a consolidation on Oct. 21 in strong volume, topping its 37.48 buy point. Later, it reversed lower, before rebounding back inside the buy zone Thursday. NCino is very extended from its moving averages, and currently sits more than 18% above its 50-day moving average.
When stocks are that extended from key moving averages, it adds risk to new buys as the stock is at a higher risk of pulling back.
NCino stock now trades inside the 5% buy zone, which tops out at 39.35. The breakout looks strong, with multiple upside volume spikes in recent weeks indicating institutional support.
Also, the artificial intelligence stock also maintains a solid Accumulation/Distribution Rating of A, another signal of strong institutional support. The total number of funds owning the stock has grown steadily over the past few quarters, from 351 in the December-ended quarter of 2023 to 378 in the September quarter this year.
North Carolina-based nCino is a software-as-a-service platform that offers cloud-based software to banks and credit unions, regardless of their size. The platform, used for lending and quick deposit account openings, uses AI and machine-learning models powered by nCino's IQ technology for predictive analysis and credit risk.
Over the past three quarters, nCino has churned out decelerating year-over-year earnings growth, going from 425% to 171% and 56%, according to MarketSurge. That averages out to roughly 217% per quarter. Meanwhile, sales growth came in at 13% for each quarter over that same time period.
NCino's annual earnings rocketed last year, as the company finally achieved profitability. The company showed annual earnings of 56 cents a share. As for 2025, nCino stock analysts expect the company to show earnings of 67 cents a share, representing a gain of 32%.
The fintech company also announced on Dec. 21 that it expanded its partnership with customer relationship management software giant Salesforce (CRM).
"We're glad to again be expanding our work with Salesforce and are committed to utilizing each other's strengths to further benefit financial institutions of all sizes around the globe," Chief Executive Pierre Naude said in a news release announcing the deal.
According to IBD Stock Checkup, nCino ranks No. 6 in the financial computer software industry group. The group itself ranks No. 5 out of IBD's 197 groups, a strong sign of leadership.
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